Apple today announced that it is on track to sell its one millionth iPhone before the end of September, and to make iPhone affordable for even more customers this holiday season, it is lowering the price of the most popular iPhone model with 8GB of storage from $599 to $399.

"The surveys are in and iPhone customer satisfaction scores are higher than we've ever seen for any Apple product," said Steve Jobs, Apple's CEO. "We've clearly got a breakthrough product and we want to make it affordable for even more customers as we enter this holiday season."

The 8GB iPhone is available immediately for $399 in the US through Apple's retail and online stores and AT&T retail stores. The iPhone 4GB model will be sold while supplies last.